Question

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Laker Company reported the following January purchases and sales data for its only product.

Date		Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1	Beginning inventory	140	units	@	$	6.00	=	$	840
Jan.	10	Sales										100	units	@	$	15
Jan.	20	Purchase	60	units	@	$	5.00	=		300
Jan.	25	Sales										80	units	@	$	15
Jan.	30	Purchase	180	units	@	$	4.50	=		810
		Totals	380	units					$	1,950		180	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

            Exercise 6-3 Perpetual: Inventory costing methods LO P1

Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

Required 3

Required 4

Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.

	Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory- Units Cost Per Unit Ending Inventory- Cost Jan. 1 Beginning inventory 140 Jan. 20 Purchase 60 Jan. 30 Purchase 180 380 0 $0 0 $0

Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)

	Weighted Average - Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 140 @ $6.00 = $840.00 January 10 January 20 Average cost January 25 January 30 Totals

Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.

	Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 140 @ $6.00 = $840.00 January 10 January 20 January 25 January 30 Totals

Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

	Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 140 @ $6.00 = $840.00 January 10 January 20 January 25 January 30 Totals

Answer 1

	Cost assigned to ending inventory and cost of goods sold using specific identification.
		Available for Sale			Cost of Goods Sold			Ending Inventory
	Purchase Date	Activity	Units	Unit Cost	Units Sold	Unit Cost	COGS	Ending Inventory- Units	Cost Per Unit	Ending Inventory- Cost
	Jan. 1	Beginning inventory	140	$6.00	125	$6.00	$750.00	15	$6.00	$90.00
	Jan. 20	Purchase	60	$5.00	55	$5.00	$275.00	5	$5.00	$25.00
	Jan. 30	Purchase	180	$4.50	0	$4.50	$0.00	180	$4.50	$810.00
			380		180		$1,025.00	200		$925.00

Cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
	Weighted Average - Perpetual:
		Goods Purchased			Cost of Goods Sold					Inventory Balance
	Date	# of units		Cost per unit	# of units sold		Cost per unit	Cost of Goods Sold		# of units		Cost per unit	Inventory Balance
	1-Jan	140		$6.00						140	@	$6.00	=	$840.00
	10-Jan				100		$6.00	$600.00		40		$6.00		$240.00
	20-Jan	60		$5.00						40		$6.00		$240.00
										60		$    5.00		$           300.00
	Average cost									100		$5.40		$540.00
	25-Jan				80		$                5.40	$              432.00		20		$5.40		$108.00
	30-Jan	180		4.50						20		$5.50		$110.00
										180		$4.50		$810.00
	Totals	380			180			$1,032.00		200		4.6		$920.00

Cost assigned to ending inventory and to cost of goods sold using FIFO.
	Perpetual FIFO:
		Goods Purchased			Cost of Goods Sold					Inventory Balance
	Date	# of units		Cost per unit	# of units sold		Cost per unit	Cost of Goods Sold		# of units		Cost per unit	Inventory Balance
	1-Jan	140		$6.00						140	@	$6.00	=	$840.00
	10-Jan				100		$6.00	$600.00		40		$6.00		$240.00
	20-Jan	60		$5.00						40		$6.00		$240.00
										60		$5.00		$300.00
										100				$540.00
	25-Jan				40		$6.00	$240.00
					40		$5.00	$200.00		20		$5.00		$100.00
	30-Jan	180		$4.50						20		$5.00		$100.00
										180		$4.50		$810.00
	Totals	380			180			$1,040.00		200				$910.00

Cost assigned to ending inventory and to cost of goods sold using LIFO.
	Perpetual LIFO:
			Goods Purchased							Cost of Goods Sold								Inventory Balance
	Date		# of units				Cost per unit			# of units sold		Cost per unit			Cost of Goods Sold			# of units					Cost per unit		Inventory Balance
	1-Jan		140				$6.00											140			@		$6.00		=		$840.00
	10-Jan									100		$6.00			$600.00			40					$6.00				$240.00
	20-Jan		60				$5.00											40					$6.00				$240.00
																		60					$5.00				$300.00
																		100									$540.00
	25-Jan									60		$5.00			$300.00
										20		$6.00			$120.00			20					$6.00				$120.00
	30-Jan		180				$4.50											20					$6.00				$120.00
																		180					$4.50				$810.00
	Totals		380							180					$1,020.00			200									$930.00